President Bush outlines his tax-cut proposal and budget plans before a joint session of the 107th Congress on Feb. 27. (Photo Credit: AP Photo/Doug Mills)

For the first time in more than 30 years, the U.S. government is taking in more money in taxes than it is spending on federal programs.The expectation that the federal surplus will continue to grow has touched off a vigorous debate over how best to use the unanticipated windfall. The Bush administration wants to “give back” part of the surplus to taxpayers in the form of a $1.6 trillion tax cut. Critics say the money should be used for a more modest tax cut, but only after the national debt is paid down and urgently needed social programs are funded. Beyond the political infighting over Bush's tax proposal, lawmakers are at odds over how best to protect the funds needed for Social Security and Medicare.